in the long run.

This paper studies optimal taxation in a version of the neoclassical growth model in which investment becomes productive within the period, thereby making the supply of capital elastic in the short run. Because taxing capital is distortionary in the short run, the government׳s ability/desire to...

This paper studies optimal taxation in a version of the neoclassical growth model in which investment becomes productive within the period, thereby making the supply of capital elastic in the short run. Because taxing capital is distortionary in the short run, the government's ability/desire to...

which government infrastructures, which are part of the fiscal policy, are an input into production which firms do not control. We show that if the production of government infrastructures is subject to correlated but less volatile shocks than private production, then a negative productivity...